Energean to buy two gas fields off Israel

The partners in Israel’s two offshore gas fields, Tamar and Leviathan, have agreed to sell all of their rights in two other fields, Tanin and Karish, located off Israel, to the oil company focusing on the Mediterranean and North Africa, Ocean Energean Oil and Gas.

The agreement was signed on Tuesday between Delek Group’s subsidiary, Delek Drilling, Avner Oil, and Energean.

Energean will buy all of the rights from the partners and Noble Energy in the Mediterranean Sea leases I/16 Tanin and I/17 Karish for a total sum of $148.5 million, plus royalties in connection with natural gas and condensate that will be produced from the leases.

Avner Oil and Delek each have 26.4705% stake in the fields, while Noble Energy holds 47.059% interest.

If and when the transaction is closed, Energean will hold 100% interest in both fields.

Noble and Delek were required to divest their ownership in the Karish and Tanin fields, located in the Alon A and Alon C licences, in order to avoid being branded a cartel by the Israeli authorities, as they already own the country’s largest offshore gas fields, Tamar and Leviathan.